Article

Modern Trade vs General Trade in FMCG: India Channel Guide

PPMS Free Beginner India

A clean side-by-side comparison of GT and MT operating models, good as a first orientation read before diving into the margin and distribution-chain specifics elsewhere in this pool.

  • MT supply often runs direct from a distribution centre with automated replenishment
  • GT has lower entry costs but higher long-run complexity managing thousands of outlets
  • Channel choice should follow category economics, not just brand ambition
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It answers 2 questions

  1. General trade vs modern trade, where should I start, and how do the margins actually work?
  2. What's the real cost and effort of getting into modern trade (Reliance Retail, Nykaa stores, big chains)?

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